Financial literacy in school age children is important, but the stakes get much higher once your kids start working and earning an income. With money in their pockets and no shortage of places to spend it, saving and investing might be the last things on their mind. Fortunately, there are ways to entice your kids into making smart decisions with their money.

Introduce technology into the mix

These days, there are several apps that round up your purchases and deposit the difference into a savings or investment account. This can transform the act of saving and investing from something that requires intent and willpower to something that happens in the background as you go about your day.

Micro-investing apps in particular might be a good way to let your child test the share trading waters and learn how markets work. This can help demystify concepts like risk and diversification, as well as open their eyes to ways their money can work for them.

Offer to match their savings

Another strategy is to offer to make a matching contribution if your kids can reach their savings targets. Have a discussion about what a reasonable savings goal might be and encourage them to stick to it. The point here is to reinforce behaviours that will serve them well later on in life, like delayed gratification and setting aside money for a rainy day.

Highlight the benefits of compound interest

You might have an easier time fostering a saving mindset in your child by highlighting the rewards that come with it. Encourage them to seek out high-interest savings accounts that can help grow their savings and counter the effects of inflation. As the accelerating effects of compound interest become more apparent, it can be just the encouragement your kids need to squirrel away even more.

Help them save by providing free accommodation

The high cost of rent is one of the biggest obstacles to saving, so if you’re able and willing to provide free accommodation it can be just the leg-up your kids need. They might even be able to repay you by contributing in other ways, such as doing chores around the house or handling the weekly grocery run.

Alternatively, if your kids have delayed moving out or returned to live with you after a stint on their own, you might consider charging board but depositing all or some of it into an account earmarked for their future. This could be tapped into once they’re ready to buy a home.

Top up their super

Finally, there’s also the option to contribute to your child’s super, or match any contributions they make themselves. This might not be immediately appreciated by them, but with the help of compound interest, even a modest contribution can make a significant difference over time. Just keep in mind that there aren’t any tax deductions available for parents who top up their child’s super.

Your child’s attitude towards saving and investing will evolve over time, but there’s a lot you can do to help get the foundations right. Along the way, make sure to celebrate their milestones — whether it’s reaching a particular savings goal or making their first investment.